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British Gas owner Centrica profits quintupled to £1.34bn as energy bills soar

British gas the owner Centric operating profit increased fivefold to £1.34 billion electricity bills soar

The company’s profit for the six months to the end of June was up significantly from £262m in the same period last year.

The energy giant has announced it will resume its 1p per share dividend this year after a three-year suspension.

Group chief executive Chris O’Shea reportedly argued that Centrica’s profits were not driven by rising electricity bills for customers.

Oil company Shell also reported record profits of $11.5 billion, doubling its earnings in one year amid a jump in energy prices.

Speaking to TalkTV, former Energy UK boss Angela Knight said there was “a big question mark over those who are making extraordinary profits from an extraordinary world situation”.

Miata Fanboule, chief executive of the New Economics Foundation, also tweeted: “Energy company #Centrica has made an additional £1bn profit in the last 6 months while millions of people can’t afford to heat their homes.

“Our economic system currently allows it, but it doesn’t have to be that way.”

Group chief executive Chris O’Shea said Centrica would continue to support customers “through the most difficult energy crisis in living memory”.

He added: “We are well aware of the challenging environment many customers face and will continue to support them.

“We are investing in our customers and colleagues by creating at least 500 additional UK customer service roles at British Gas Energy and 1,000 new UK engineering apprenticeships, while through the British Gas Energy Support Fund we provide grants to help customers pay for their energy . accounts.

“We have a clear strategy to continue to improve operational performance, grow our business and position ourselves to deliver zero bottom line at a cost that helps the many, not the few.

“We are committed to investing in an energy transition that will improve energy security in our core markets.”

Oil company Shell also reported record profits of $11.5 billion, doubling its earnings in one year amid a jump in energy prices.

Centrica Group chief executive Chris O’Shea is reported to say profits are independent of rising customers’ electricity bills

(Getty Images/iStockphoto)

That’s up from $5.5 billion in April-June 2021, an increase of $6 billion in profit, and up from $9.1 billion in the first quarter of 2022.

Earlier this year, the oil giant posted a fourteen-fold increase in quarterly profits, rekindling calls for a windfall tax to ease the burden on struggling families amid a worsening cost-of-living crisis.

British Gas’s operating profit fell 43 per cent to £98m, down from £172m at this time last year, before the energy crisis took hold.

Economists have warned that electricity bills are set to triple as British households face an “almighty blow” to living standards.

Average household could face a £500 energy bill in January 2023 with an annual price cap forecast of £3,850, well above the already bleak bill growth forecasts made earlier this year.

The forecast, by consultancy BFY Group, came as Russia took further steps to cut gas supplies to Europe, further choking the market.

The country sharply reduced gas supplies to a number of European countries after the start of the war with Ukraine. The bitter conflict has increased pressure on global food, gasoline and domestic energy costs.

“If you look back at the same time last year, your bill is likely to be three times what you would have paid in January,” said Gemma Berwick, senior adviser at BFY. The Independent.

British Gas owner Centrica profits quintupled to £1.34bn as energy bills soar

Source link British Gas owner Centrica profits quintupled to £1.34bn as energy bills soar

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